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AGENDA ITEM NO. 13.

CITY OF HAWTHORNE
City Council
AGENDA BILL

For the meeting of 04/22/2025
Originating Department: Housing
                                                     

City Manager:
Department Head:
signature

SUBJECT:

Public Hearing to Consider Adoption of the Draft Citizen Participation Plan (CPP), 2025-2029 Consolidated Plan, and 2025-2026 Annual Action Plan for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs.
 

RECOMMENDED MOTION:

The staff advises that the City Council:
1.    Conduct a public hearing to receive comments regarding the draft Citizen Participation Plan (CPP), 2025-2029 Consolidated Plan, and 2025-2026 Annual Action Plan.
2.    Consider and adopt the Citizen Participation Plan (CPP), 2025-2029 Consolidated Plan, and 2025-2026 Annual Action Plan and authorize the City Manager, or designee, to submit the adopted plans to the U.S. Department of Housing and Urban Development (HUD)
3.    Provide direction to City staff regarding the methodology for adjusting CDBG and HOME budgets in the event that the City’s actual 2025-2026 allocation amounts from HUD differ from current estimates.
4.    Authorize the City Manager, or designee, to execute all necessary grant agreements, certifications, and related documents required by HUD for the administration of the CDBG and HOME programs for the 2025-2026 program year. 
5.    Authorize the City Manager, or designee, to execute contracts with subrecipients, contractors, and professional service providers necessary to implement the CDBG and HOME-funded activities identified in the 2025-2026 Annual Action Plan.
6.    Authorize the appropriation of the 2025-2026 CDBG and HOME program funds, consistent with the approved Annual Action Plan.     

DISCUSSION:

As an “Entitlement Grantee,” the City of Hawthorne (City) receives an annual allocation of federal funds from the U.S. Department of Housing and Urban Development (HUD) through its Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs. These programs are designed to principally benefit low- and moderate-income residents by supporting activities that provide decent housing, create suitable living environments, and expand economic opportunities. 

To continue receiving these funds, HUD requires the City to prepare a series of planning documents, including a Citizen Participation Plan (CPP), a Five-Year Consolidated Plan, and an Annual Action Plan. Collectively, these documents establish the City’s priorities for the use of CDBG and HOME funds and guide the implementation of eligible activities.

Citizen Participation Plan (CPP)
The CPP outlines the City’s policies and procedures for encouraging and facilitating public participation in all aspects of its HUD-funded programs. The proposed updates to the CPP reflect recent changes to HUD regulations and best practices intended to ensure meaningful access to the planning process, particularly for low- and moderate-income residents, persons with disabilities, and individuals with limited English proficiency.
 
Goal Name Need(s) Addressed Five Year Goal Outcome Indicator
Public Services
Expand public services for LMI residents
Public service activities other than Low/Mod Income Housing Benefit:
1,525 Persons Assisted
Public Facilities & Infrastructure Improvements
Improve public facilities and infrastructure

Address material barriers to accessibility
Public facility or infrastructure activities other than Low/Mod Income Housing Benefit:
125,000 Persons Assisted

Other: 5
Affordable Housing Preservation
Preserve the supply of affordable housing
Homeowner housing rehabilitated:
50 Households / Housing Units
Affordable Housing Development
Increase the supply of affordable housing
Homeowner housing added:
2 Households / Housing Units

Rental housing rehabilitated:
2 Households / Housing Units
Fair Housing Services
Ensure equal access to housing opportunities
Public service activities other than Low/Mod Income Housing Benefit:
1,250 Persons Assisted
Planning & Administration
All
Other: 5

2025-2029 Consolidated Plan
The Consolidated Plan presents a comprehensive analysis of the City’s housing and community development needs and establishes a framework for the use of CDBG and HOME funds over a five-year period from July 1, 2025, through June 30, 2030. Based on community engagement, data analysis, and consultation with stakeholders, the Consolidated Plan identifies six high-priority needs, which will be addressed through six strategic goals. These goals are accompanied by quantifiable outcome targets for the five-year period, as shown in the table below. 

2025-2026 Annual Action Plan
The Action Plan identifies the specific projects and activities that will be implemented during the upcoming program year with CDBG and HOME funds to address the priority needs and goals established in the Consolidated Plan. For the 2025-2026 program year, the City anticipates receiving $1,177,964 in CDBG funds and $508,759.41 in HOME funds. When combined with program income and available prior year resources, the City proposes to allocate a total of $1,377,964 in CDBG funds and $2,376,567.80 in HOME funds to support the following eligible activities to be implemented from July 1, 2025, through June 30, 2026.
 

2025-2026 CDBG Activities

Public Service Activities  
Catholic Charities of Los Angeles: St. Margaret’s Emergency Assistance $20,865.00
Family Promise of the South Bay: Shelter and Supportive Services $20,865.00
New Star Family Center: Domestic Violence Services $20,865.00
South Bay Workforce Investment Board: Teen Center $93,217.00
The Richstone Family Center: Behavioral Health Services $20,865.00
Sub-Total: $176,677.00
   
Capital Improvement Activities  
City of Hawthorne: Alley Reconstruction $420,520.00
City of Hawthorne: Section 108 Loan Repayment $545,175.00
Sub-Total: $965,695.00
   
Program Administration Activities  
City of Hawthorne: CDBG Administration $205,592.00
Fair Housing Foundation: Fair Housing Services $30,000.00
Sub-Total: $235,592.00
   
CDBG TOTAL: $1,377,964.00

2025-2026 HOME Activities

Housing Activities  
City of Hawthorne: Housing Rehabilitation Program $1,000,000.00
City of Hawthorne: Affordable Housing Development $885,384.80
Sub-Total: $1,885,384.80
   
Community Housing Development Organization (CHDO) Activities  
TBD: CHDO Set-Aside (includes PY21, 22, 23, 24, & 25) $440,308.00
Sub-Total: $440,308.00
   
Program Administration Activities  
City of Hawthorne: HOME Administration $50,875.00
Sub-Total: $50,875.00
   
HOME TOTAL: $2,376,567.80

As of the date of the preparation of this document, HUD has not yet released the 2025-2026 Annual Allocations. For this reason, HUD has advised the City to prepare this draft document utilizing the current year annual allocation and include “contingency provision” language detailing how the City will adjust its proposed Plan once the actual allocation amounts become known. As such, the following methodology shall be employed if the City’s 2025-2026 annual allocation changes.

CDBG
Should the CDBG allocation be greater than $1,177,964:
  •  The CDBG Administration budget will be increased to be compliant with the 20 percent cap for administrative activities
  •  All public service activities will receive an equitable increase to be compliant with the 15 percent cap for public services activities
  •  Balance of funds will be added to the City’s Alley Reconstruction activity
  •  Funding levels for all outstanding activities will remain the same as proposed in the 2025-2026 Action Plan
Should the CDBG allocation be less than $1,177,964:
  • The CDBG Administration budget will be reduced to be compliant with the 20 percent cap for administrative activities
  • All public service activities will receive an equitable reduction to be compliant with the 15 percent cap for public services activities
  • Balance of funds will be deducted from the City’s Alley Reconstruction activity
  • Funding levels for all outstanding activities will remain the same as proposed in the 2025-2026 Action Plan

HOME
Should the HOME allocation be greater than $508,759.41:
  • The HOME Administration budget will be increased to be compliant with the 10 percent cap for administrative activities
  • The CHDO activity budget will be increased to be compliant with the 15% percent set-aside requirement
  • Balance of funds will be added to the City’s Housing Rehabilitation Program
Should the HOME allocation be less than $508,759.41:
  • The HOME Administration budget will be reduced to be compliant with the 10 percent cap for administrative activities
  • The CHDO activity budget will be reduced to be compliant with the 15 percent set-aside requirement
  • Balance of funds will be deducted from the City’s Affordable Housing Development project 

Approval of these plans does not trigger environmental clearance under the National Environmental Policy Act (NEPA) or the California Environmental Quality Act (CEQA). However, prior to the commitment or release of funds for each of the proposed projects, the City will complete any required environmental reviews in accordance with applicable regulations.  

 

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

NONE.

FISCAL IMPACT:

There is no impact to the City’s General Fund, as all administrative costs associated with the preparation, oversight, and implementation of CDBG and HOME-funded activities will be covered through the respective administrative allocations. Approval of the 2025-2026 Annual Action Plan authorizes the appropriation of $1,177,964 in CDBG and $508,759.41 in HOME funds. When combined with program income and available prior year resources, the 2025-2026 Action Plan will allocate a total of $1,377,964 in CDBG funds and $2,376,567.80 in HOME funds.

NOTICING PROCEDURE:

In compliance with federal regulations, a Notice of Public Hearing was published in the Hawthorne Press-Tribune on March 20, 2025, announcing the availability of the draft CPP, 2025-2029 Consolidated Plan, and 2025-2026 Annual Action Plan. These documents have been available for public review at City Hall, the Hawthorne Public Library, and on the City’s website from March 21, 2025, through and including April 22, 2025. 

Attachments